With its eye on future growth and product development, IQMS, a Paso Robles-based manufacturing software company, has brought in a new round of investment and a new leader.
The company received $40 million in private-equity investment from Technology Crossover Ventures and Banneker Partners. The latest infusion brings the total investment from the partners over the past year to $75 million.
“The last couple of years has seen explosive growth for the company,” said Gary Nemmers, IQMS’ chief executive officer, adding that the company has gained 120 customers annually for the last few years.
“The market out there in North America alone is enough to grow the company two-fold from what it is today. IQMS has about 1,000 customers currently,” he said.
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To accommodate the growth, the company plans to add a third building at its Paso Robles campus in 2016. IQMS, which has about 275 employees in total, with about 175 in Paso Robles, anticipates hiring another 50 to 70 people in the next year or so, Nemmers said.
“There are no plans to ever move the headquarters,” he said.
Nemmers, former senior vice president and general manager of HighJump Software Inc., replaces Randy Flamm, who founded IQMS in Southern California in 1989 with his wife, Nancy, before moving the operation to Paso Robles in 1995 with a staff of seven. Flamm is now chief product officer and chairman of the five-person board.
The decision to seek outside investors last year was motivated by a desire for the couple to focus more on their passions outside of the office, Nemmers said. The couple owns a substantial amount of ranch land near Cambria.
“He will stay in the business, even if he ‘retires,’” Nemmers said.
Nemmers declined to say what percentage of the company the Flamms still own, but he said that it’s a substantial minority share.
Nemmers, who described his new role as a “good fit,” expects to retain the company culture while growing IQMS “exponentially and organically.”
In a company statement about the changes, Flamm said, “IQMS will continue to grow as a leader in manufacturing ERP (enterprise resource planning software) and automation, and our customers and prospects can look forward to increased investment in the product and the company.”
The international company has won two American Business Awards and was honored as one of the year’s Most Innovative Tech Companies. Flamm was also recognized in the Executive of the Year category.